that an interim VHF/FM Transmission Plan should be introduced to provide for up to four territory-wide services (which would incorporate the facility for Commercial Radio to introduce VHF/FM services of limited coverage) to duplicate in FM existing MW services and to enlarge the service area of existing VHF/FM broadcasts;

that, in principle, local radio services produced by RTHK should be introduced initially at a local transmitter serving Tsuen Wan. After review of its success similar services might be extended to other areas;

that a progress report be made to the Council after the service for Tsuen Wan had been in operation for one year; and

at the time of the progress report consideration would be given to whether local radio services might be financed, wholly, in part, or at all, by commercial advertising, and whether such services should be provided by RTHK or by a commercial radio station.

Further the Council noted that the Postmaster General was producing a full VHF/FM Transmission Plan aimed at:

(a)

(b)

duplicating in VHF/FM all existing MW frequencies; and

accommodating all existing VHF/FM services.

An initial feasibility study has been carried out by Cable and Wireless Limited in conjunction with the BBC, to determine the practicability of extending VHF/FM broadcasting services in Hong Kong. The study put forward two alternative frequency plans, each providing up to nine VHF/FM channels. It seems that transmissions on channels 1-5 could almost certainly be implemented, without electronic interference, subject to the necessary policy and financial approval. On the other hand, queries have been raised about the addition of channels 6-8 on the grounds that they might cause interference to aeronautical navigational aids. The Post Office is currently proposing, in conjunction with CAD, that this be the subject of further tests. Furthermore, because of the interference problem, direct trans- missions of channel 9 could only be used if and when Kai Tak Airport were resited. Carrying out these tests will inevitably delay the implementation of a full territory-wide VHF plan.

G.S. 166

CONFIDENTIAL **

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